SDC - Why SmileDirectClub's Spending Should Leave Investors Frowning
Without a doubt, SmileDirectClub (NASDAQ:SDC) is in the doghouse on Wall Street. As the share price continues to reach new 52-week lows, contrarian investors may be tempted to engage in some bottom fishing. They might observe that SDC stock trades for less than $5, while SmileDirectClub's closest rival, Invisalign maker Align Technology (NASDAQ:ALGN), has a stock that's approaching $700. But remember the old Benjamin Graham/Warren Buffett saying: Price is what you pay, but value is what you get. And when it comes to SmileDirectClub, the value of cost containment seems to have been lost on the management lately.
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During 2021's second quarter, SmileDirectClub undoubtedly vexed some of its cost-conscious stakeholders with an adjusted operating loss of $52.7 million and negative free cash flow of $51 million.
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Why SmileDirectClub's Spending Should Leave Investors Frowning